Trade Of The Day: USDCAD Testing Price & Time Symmetry
Trade Of The Day: USDCAD climbed above the 1.4300 handle Tuesday, reaching a fresh 13-year high. The loonie came under renewed pressure during the as oil prices resumed their fall with a short-lived WTI crude sub $30.00 a barrel print which attracted buyers. Crude continues to trade above $30 while USDCAD closed above the psychological 1.43s threshold for the first time since April 2003.
Technicals: Bulls have the ball while 1.4315 supports, expect a grind higher to test stops above 1.44. Only below 1.42 eases immediate bullish pressure.
Trade Idea: USDCAD is testing the 100% Fibonacci extension from its 2015 lows as highlighted in the chart below, while 1.44 offers resistance and WTI Crude holds the $30 a barrel level I am monitoring intraday price action at current levels watching for reversal to set speculative counter trend shorts, looking to play a corrective trade. As this is a counter trend trade I will be nimble in managing my risk intraday, risking an initial 100pips at entry and moving stops to entry +40/60pips in profit, initially targeting 1.38 and 1.34 in extension as highlighted in the chart below.
For updates on trade of the day set ups and the other trades I am currently monitoring be sure to follow me on Twitter @LFXPatrick